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2019 (5) TMI 1008 - HC - Income TaxExpenditure on airfare booked under technical guidance fee - capital expenditure OR revenue expenditure - HELD THAT:- Questions have already been answered against the Revenue by the order passed by this Court on 2nd August 2017 in the Revenue’s appeal in the Assessee’s own case for AY 2009-10 in The Commissions of Income Tax – LTU v. Honda Cars India Ltd. [2018 (5) TMI 1875 - DELHI HIGH COURT] Addition u/s 14A - HELD THAT:- The issue stands answered against the Revenue by the decision in Cheminvest Ltd. v. CIT [2015 (9) TMI 238 - DELHI HIGH COURT] Royalty and lump sum fee paid by the assessee - capital expenditure OR revenue expenditure as claimed by the Assessee - HELD THAT:- ITAT has rightly drawn a distinction between the royalty payments made by the Assessee to the principal during its formative years and those made in subsequent years when the Assessee was fully operational. While the former payments were characterised as capital expenditure, the latter could not and were rightly treated as revenue expenditure. For the earlier AY 2008-09 this Court [2018 (5) TMI 1875 - DELHI HIGH COURT] has remanded the matter to the ITAT for a fresh determination of the above issue, it cannot be said that for the present AY i.e. 2010-11, the ITAT has not given cogent reasons for treating the expenditure as a revenue expenditure.
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